FY2012

Financial Results（ Securities code： 4775 ）SOGO MEDICAL CO.,LTD. All Rights Reserved

Contents
Ⅰ. FY2012 Financial results

Ⅲ. Segment by region

FY2012 Financial highlights

3

Regional segments

25

FY2012 Financial results key points

4

FY2012 Segment sales/Operating income

26

Data of medical practice support/pharmacies

5

FY2012 Segment operating results

27

FY2012 Financial position

9

Higashinihon Office28

FY2012 Cash flows

10

Nishinihon Office29

Financial indicators

11

Kyushu Office30

FY2013 Segment targets

31

Management principles

32

Concept

33

Ⅱ. FY2013 Financial result forecasts andmedium-term management plans
FY2013 Financial result forecasts

13

Management policies

14

Tracking (FY2011-FY2013)15

Business model

16

DtoD

17

FY2013 Main priority initiatives

18

Strengthen qualitative and quantitative support
for practice start-up

19

Expand the number of ‘high-value pharmacies’

20

Enhance qualities of ‘high-value pharmacies’21

Promotemanagement
contracting
SOGO MEDICAL
CO.,LTD.
All Rights Reserved

231

Ⅰ. FY2012 Financial Results

SOGO MEDICAL CO.,LTD. All Rights Reserved

2

FY2012Financial highlights（¥millions）

FY2011Sales

FY2012 Plan

Year-on-Year

FY2012 Actual

ChangeActual vs Plan
ChangeChange80,22287,48086,658

6,436

8.0%

▲ 0.9%

20,201

22,12422,062

1,861

9.2%

▲ 0.2%

Consulting

1,289

1,252

1,334

45

3.5%

6.5%

Rental

7,333

5,973

5,795

▲ 1,537▲ 21.0%▲ 2.9%

Leasing/Installment

9,104

12,978

12,979

3,875

42.6%

0.0%

Others

2,473

1,921

1,952

▲ 521

▲ 21.1%

1.6%

Pharmacies

59,06264,17663,420

4,358

7.4%

▲ 1.1%

959

1,180

1,175

216

22.5%

▲ 0.4%

4,848

4,275

4,324

▲ 524

▲ 10.8%

1.1%

Medical practice support

481

－

333

▲ 147

▲ 30.7%－

Pharmacies

4,673

－

4,409

▲ 264

▲ 5.7%－

Others

168

－

92

▲ 75

▲ 44.9%

－

▲ 474

－

▲ 511

▲ 37

－

－

Ordinary income

4,881

4,306

4,343

▲ 537

▲ 11.0%0.8%

Net income

2,504

2,533

2,532

28

1.1%

0.0%

\346.93\350.87\350.81－－－

Medical practice support

OthersOperating income

Elimination and Corporate

Net income per share※EBITDA＝Ordinary Income＋Interest Expense・Discount Expense ＋Depreciation

SOGO MEDICAL CO.,LTD. All Rights Reserved

3

FY2012 Financial results key points
Sales
Operating Income¥８６,６５８ million （year-on-year ８.０％ up）¥４,３４３ million （year-on-year １１.０％ down）✔ Practice start-up support haｄ a ripple effect on leasing contracts.
✔ Rental sales decreased by 21% compared to FY2012 due to a reactionary drop after high TV replacement demand
accompanying the shift to all-digital terrestrial broadcasting✔ Leasing sales increased by 42% compared to FY2012, to over ¥10,000 million.
✔ Pharmacy sales increased by 7.4% compared to FY2012 due primarily to new openings and M&A activities.
✔ 53 new pharmacies opened, an increase of 13 pharmacies compared to FY2011.
✔ The number of new pharmacies and health care malls and amount of facility leasing increased.

Total Assets
Net Assets✔ Capital adequacy ratio✔ Net ＤＥ ratio¥５７,１３８ million （year-on-year ７.５％up）¥２１,６３６ million （year-on-year １０.９％up）
37.8％（ year-on-year 1.1 ％ up）
0.4Times（ year-on-year 0.1times down）

Cash Flows from Operating Activities
Cash and Deposits at end of FY2012

SOGO MEDICAL CO.,LTD. All Rights Reserved¥７,２６９million （year-on-year ６２.１％up）¥５,０９５million （year-on-year ２７.９％up）

4

Medical practice support（Consulting）
Consulting sales （¥Millions）

Practice transfer/start-up support (Projects)
FY2012changeFY2008FY2009FY2010FY2011

1,439

1,419

1,234

1,289

1,334

3.5%

Consulting sales

705

719

641

733

806

9.9%

Practice transfer/start-up support sales

733

700

593

556

528

▲ 4.9%Total

FY2012changeFY2008FY2009FY2010FY2011

733

700

593

556

528

▲ 4.9%

Doctor practice transfer support

522

518

452

401

348

▲ 13.2%Doctor practice start-up support

106

90

60

78

110

41.3%

DtoD-concierge advertising

105

90

81

76

70

▲ 8.6%

Total

Succeed members
FY2012changeFY2008FY2009FY2010FY2011

1,396

1,368

1,366

1,376

1,434

58

Hospital

565

564

569

576

591

15

Clinic

726

705

698

695

726

31

Doctors in public practice, others

105

99

99

105

117

12

Total

Doctors wishing to transfer or start-up practiceDoctors wishing to transfer orstart-up practice

FY2008FY2009FY2010FY2011

14,27016,842

26,17432,054

FY2009FY2010FY2011

1,287

1,703

2,585

3,001

4,279

1,278

Full time

140

121

115

98

74

▲ 24

Part time

1,147

1,582

2,470

2,903

4,205

1,302

Doctor practice transfer suppor total

Doctor practice start-up suppor total

Practice transfer/start-up support sales （¥Millions）

FY2012change40,7788,724

FY2012changeFY2008

157

120

147

160

215

55

Consulting

64

56

47

36

52

16

No consulting

93

64

100

124

163

39

Leasing sales through practice start-up support
Leasing sales through practice start-up support(\millions)
Leasing sales through practice start-up support
to total Leasing sales

FY2012changeFY2008FY2009FY2010FY2011

1,416

1,033

1,349

1,486

1,910

13.3%

11.0%

17.2%

15.9%

17.6%

28.5%

[Reference] The aged and number of doctors in public practice （FY2010）

40.4%
Doctors in public
practice

20.4%

0%

20%

40%

60%

20.0%

80%

100%

under 29 30-39 40-49 50-59 60-69 over 70※ Source：Overview of doctors/dentists/pharmacists in 2010 (Ministry of Health, Labor and Welfare)Key point✔ As the number of registered doctors in public practice increased,
practice start-up sales and leasing sales increased.

SOGO MEDICAL CO.,LTD. All Rights Reserved

5Medical practice support（Rental, leasing/installment）
RentalLeasing/Installment

Rental sales（\millions）

Leasing sales（￥mililons）
FY2008FY2009FY2010FY2011FY2012change

5,606

6,608

7,851

7,333

5,795 ▲ 21.0%

Total
Sales （Sub Rental）
Rental

828

1,951

3,609

2,864

1,373 ▲ 52.1%

4,778

4,657

4,241

4,468

4,422

▲ 1.0%

FY2009FY2010FY2011FY2012change10,406

10,024

7,623

9,104

12,97942.6%

Sales （Sub lease）

9,011

7,704

6,273

7,414

9,458

27.6%

Lease

1,132

2,025

986

1,305

3,075

135.5%

261

294

363

383

445

16.1%

FY2008FY2009FY2010FY2011

1,967

2,301

2,643

3,580

3,498

▲ 2.3%

Lease receivables and investment assets

1,131

1,254

1,527

2,175

2,120

▲ 2.5%

Accounts receivable-installment sales

836

1,046

1,116

1,404

1,377

▲ 1.9%

FY2008FY2009FY2010FY2011

The company's leasing sales （\millions）

10,632

9,361

7,856

9,347

10,871

16.3%

Medical equipment leasing sales in Japan（\100millions）

3,037

2,641

2,557

2,606

2,736

4.9%

Total

Installment

Rental Assets

FY2008

Lease Assets（￥mililons）
FY2012changeFY2008FY2009FY2010FY2011

Rental Assets（￥mililons）

788

1,954

5,722

8,723

7,985

▲ 8.4%

Number of rental TVs （in thousands）

174

161

140

137

134

▲ 2.1%Total

FY2012changeLease contracts

Key points✔Rental sales decreased by 21% compared to FY2011
due to a reactionary drop after high TV replacement
demand accompanying the shift to all-digital terrestrial
broadcasting

FY2012change※ Source：Lease Statistics, February 2013. （Japan Leasing Association）
The company estimated leasing sales of March, 2013.

✔Leasing sales increased by 42% compared to FY2011,
to over ¥10,000 million for the first time in 4 years.

SOGO MEDICAL CO.,LTD. All Rights Reserved

6Pharmacies（Sales）
Sales（\millions）

Key points
FY2012changeFY2008FY2009FY2010FY201145,18548,983

52,91659,062

63,4207.4%

44,415

48,14852,081

58,19862,337

7.1%

Prescription drug sales

33,22936,50438,72543,68846,212

5.8%

Dispensing technical fees

11,186

11,644

13,355

14,50916,125

11.1%

769

835

835

864

1,082

25.3%

FY2008FY2009FY2010FY2011

44,415

48,14852,081

58,19862,3377.1%

43,42547,414

51,761

55,623

54,954▲ 1.2%

Open in FY2011

-

-

-

2,376

5,562

134.0%

Open in FY2012

-

-

-

-

1,766

-

Closed pharmacies

990

734

319

197

55

-

Pharmacies
Dispensing sales

Non-prescription drug
sales

✔Pharmacy sales increase was due primarily tosales of 40 new pharmacies in FY2011(including M&A with 10 pharmacies)✔The company will open 53 new pharmacies in FY2013.
(including M&A with 16 pharmacies)

Dispensing sales（\millions）

Total
Existing pharmacies

SOGO MEDICAL CO.,LTD. All Rights Reserved

FY2012change7

Pharmacies(Number of Prescriptions and Pharmacies)
Pharmacies

The latest M&A with pharmacies

FY2012changeFY2008FY2009FY2010FY2011

258

287

328

366

417

51

3

3

13

21

21

0

Tohoku

12

14

14

15

16

1

Kanto

31

43

55

65

80

15

Chubu

43

46

48

51

56

5

Kinki

12

15

20

23

36

13

Chugoku/Shikoku

40

45

48

52

59

7

Kyushu

117

121

130

139

149

10

Total
（excluding, 2 Over-the-counter）
Hokkaido

FY2011FY201210 Pharmacies

16 Pharmacies

Maeda Co, Ltd
Shinkugenuma Co, Ltd
Hibari Co, Ltd

Soutai Co, Ltd
Hikari Co, Ltd
Obata Co, Ltd Sumiredo Co, Ltd
Azabu Co, Ltd
Irie Co, Ltd
Yataya Co, Ltd
Mori Co, Ltd

Key points✔The number of pharmacies increasedin Kanto, Kinki and Kyushu areas.

Newly open pharmacies
FY2012changeFY2008FY2009FY2010FY2011

Newly open

8

31

46

40

53

13

including, M&A

0

8

10

10

16

6

SOGO MEDICAL CO.,LTD. All Rights Reserved

8

FY2012 Financial positions（¥millions）

FY2011FY2012Main factors

Change53,16057,138

3,977

Current assets

28,59230,184

1,592（Cash and deposits）

4,004

5,115

1,111

（Notes and accounts receivable-trade）

14,823

14,327▲ 495（Inventories）

3,928

4,973

1,044

Noncurrent assets

24,56826,953

2,385（Property, plant and equipment）

17,315

18,7991,483 Acquisition of serviced housing for elderly

33,64835,501

1,853

Current liabilities

21,70923,437

1,728（Notes and accounts payable-trade）

13,414

15,065

1,651

Noncurrent liabilities

11,93912,063124（Interest-bearing debt）

14,57914,330▲ 249

Total net assets

19,511

21,636

2,124 Dividend payments △541

Total liabilities and net assets

53,16057,1383,977\2702.78\2993.28－

Total Assets

Total Liabilities

Net assets per share

SOGO MEDICAL CO.,LTD. All Rights Reserved

Buildings and structures + 1,805

Net income ＋ 2,532

9

FY2012 Cash flows（¥millions）

FY2012FY2011Main factors

ChangeNet cash provided by operating activities

4,484

7,269

2,785

（Income before income taxes andminority interests）

4,762

4,460

▲ 302

（Depreciation and amortization）

2,821

3,267

446

（Decrease (increase) in notes andaccounts receivable-trade）▲ 3,408

622

4,031

（Income taxes paid）▲ 1,850▲ 1,80743

Net cash used in investing activities▲ 4,086▲ 3,380706（Purchase of own-used assets）▲ 1,476▲ 3,032▲ 1,556（Purchase of investments in subsidiaries
resulting in change in scope of consolidation）▲ 1,971

▲ 455

1,516

▲ 170

▲ 2,777▲ 2,607（Proceeds from long-term loans payable）

3,150

1,500

▲ 1,650（Repayment of long-term loans payable）▲ 950▲ 1,376▲ 426（Repayments of lease obligations）

▲ 517

▲ 593

▲ 76

▲ 1,372▲ 1,755

▲ 383

▲ 469

▲ 541

▲ 72

Net increase in cash and cash equivalents

227

1,111

884

Cash and cash equivalents at end of period

3,984

5,095

1,111

▲ 1,702▲ 3,107▲ 1,404

Net cash used in financing activities（Repayments of installment payables）（Cash dividends paid）

Investment in plant and equipment

SOGO MEDICAL CO.,LTD. All Rights Reserved

10

Financial indicators
FY2008FY2010FY2011FY2012\168.08\210.70\299,33\346.93\350.81

ROA

8.3%

9.9%

10.5%

10.1%

7.9%

Net income to shareholders' equity ratio
(ROE)

8.6%

10.0%

13.1%

13.6%

12.3%

EBITDA margin

5.1%

6.4%

8.2%

9.7%

5.3%

ROI

14.6%

15.8%

16.5%

14.5%

12.3%

PBR

1.0

0.9

0.9

1.1

1.1

PER

12.0

9.8

7.3

8.6

9.5

Capital adequacy ratio(Shareholder's equity ratio)

50.1%

43.3%

40.5%

36.7%

37.8%

Net D/E

0.0

0.1

0.3

0.5

0.4

Dividend per share

\50

\50

\60

\70

\80

Dividend payout ratio

29.7%

23.7%

20.0%

20.2%

22.8%

Net income per share

Profitability

FY2009Investment

SafetyDividend※ROA＝Operating income÷Average of total assets Average of total assets＝（Total assets at the beginning of FY＋Total assets at the end of FY）/2※EBITDA Margin=EBITDA÷Sales※ROI＝（Ordinary income＋Interest expense/Discount expense） ÷ （Interest-bearing debts＋Shareholders’ equity）※PBR＝The market capitalization÷Net assets at the end of FY
The market capitalization＝（Number of shares issued at the end of FY－Number of treasury stocks at the end of FY）×Stock price at the end of FY※PER＝ The market capitalization÷Net income
The company has calculated PER by using actual net income for before FY2011, and FY2013 net income forecast for FY2012.
※Net D/E＝ Net interest-bearing debts ( Interest-bearing debts－Cash and deposits －negotiable deposits) ÷Shareholders’ equity
Interest-bearing debts include lease obligations and long-term accounts payable-installment purchase.
SOGO MEDICAL CO.,LTD. All Rights Reserved

11

Ⅱ. FY2013 Financial Result Forecasts
andMedium-Term Management Plans

SOGO MEDICAL CO.,LTD. All Rights Reserved

12

FY2013

Financial result forecasts（¥millions）
FY2012
InterimSales

FY2013 forecast
Full Year

InterimChangeFull Year

Interim ChangeInterim Change

Full Year Change Full Year Change

40,00386,65845,466

100,044

5,463

13.7%

13,386

15.4%

Medical practicesupport

9,285

22,062

10,86325,734

1,578

17.0%

3,672

16.6%

Consulting

575

1,334

777

1,901

202

35.1%

567

42.5%

Rental

2,742

5,795

2,888

6,128

146

5.3%

333

5.7%

Leasing/Installment

5,012

12,9796,133

14,596

1,121

22.4%

1,617

12.5%

Others

955

1,952

1,064

3,107

109

11.4%

1,155

59.2%

Pharmacies

30,18463,42033,87772,726

3,693

12.2%

9,306

14.7%

Others

533

1,175

725

1,584

192

36.0%

409

34.8%

Gross margin

5,943

13,155

6,516

14,770

573

9.6%

1,615

12.3%

SG&A

4,407

8,831

4,851

9,714

444

10.0%

883

10.0%

Operating income

1,535

4,324

1,665

5,055

130

8.4%

731

16.9%

Ordinary income

1,565

4,343

1,653

5,042

88

5.7%

699

16.1%

945

2,532

864

2,853

▲ 81

▲ 8.6%

32112.7%\130.92\350.81\119.70\395.28

－

－

－

－

Net income

Net income per share

Topics✔ There will be 384 practice start-up support projects. (An increase of 169 projects compared to FY2012).
✔ There will be 83 new pharmacies. （An increase of 30 pharmacies compared to FY2012 ）✔ Leasing sales and design/construction sales will increase through composite transactions from practice start-up support.

SOGO MEDICAL CO.,LTD. All Rights Reserved

13

Management policies (FY2011-FY2013)
Medium-term management policies

Grow as an attractive company through leveraging our‘ＤtoD’system & ‘High-Value Pharmacies’
Main priority initiatives
1. Be a leader in the community through our DtoD system and high-value pharmacy offerings.
2. Take on new business involving regional health care network infrastructure
3. Grow with our employees, foster a corporate atmosphere that allows the free expression of opinions,and be a company that meets the needs of regional communities.

Creating the foundation to ‘become No.1 in all areas’
 Strengthen qualitative and quantitative support for practice starts
 Expand the number of high-value pharmacies (increase number of openings, acquireprescriptions through DtoD operations, and enhance quality) Promote health care malls, management contracting, and facility leasing and other projects

SOGO MEDICAL CO.,LTD. All Rights Reserved

14Medium-term management plan
Tracking (FY2011-FY2013)
500 pharmacies417
759 projects

366

Final (FY2013) Targets
Pharmacies

500

Start-up support (projects)

759

375
Sales ¥100,000 million
160

Ordinary income ¥5,000 million

866

802

48
FY201143
FY2012FY2013

FY2014-

Medium-term management plan

Pharmacies
Practice start-up suppor（3 Years total）
Management contracting（including, visitation-type）

FY2011FY2012FY2013 targets

366 pharmacies

417 pharmacies

500 pharmacies

160 projects

375 (215) projects

759 (384) projects

9 projects

12 projects

33 projects（ ）: this year

SOGO MEDICAL CO.,LTD. All Rights Reserved

15

Business model
The company will provide comprehensive medical management support based on our fundamental consulting services.

Pharmacies

RentalMedicalInstitutions
Leasing・Installment

Patients

Design・Construction

Nursing
Care
From February, 2013

ＤｔｏＤ systems
Management Consulting

We are helping to create “Good medicine”
SOGO MEDICAL CO.,LTD. All Rights Reserved

16

DtoD

The company will continuously support regional health care services
both actively and efficiently through establishing health care networks.
< D to D system >SOGO MEDICAL CO.,LTD. All Rights Reserved

17

FY2013 main priority initiatives
The company will expand the opening of “High-value Pharmacies” through “D to D” systems.

医師・病医院
Doctor・Hospital/Clinic
Medical practice support

Strengthen qualitative and quantitative
support for practice start-up

×
Pharmacies

Expand the number of “High-value Pharmacies”（Increase number of openings, acquire prescriptions
through “D to D” operations, and enhance quality）

Promote health care malls, management contracting,facility leasing, and other projects

SOGO MEDICAL CO.,LTD. All Rights Reserved

18

Strengthen qualitative and quantitative
support for practice start-up
Strengthen practice start-up support
・Renew practice start-up support training program (PPI) for
sales managers
・Hold clinic-opening seminars （Hold 16times in FY2012）
・Increase registrations（Doctors wishing to transfer or start-up practices）
・Strengthen office functions
・Strengthen development expertise（Promote health care malls and other projects）
ExampleHealth care malls

Tokyo
10Pharmacies

33Pharmacies

Sogo Pharmacies
Hiroshima
Fukuoka
10Pharmacies 1Pharmacy

Kansai
8Pharmacies

Chubu
2Pharmacies
Takamatsu
1Pharmacy
Okinawa
1Pharmacy

PPI Internal Certifications for management-Level Employees

Practice start-up support seminar in Osaka (52 Participants）

Start-up Support PPI
Personnel Introduction PPI

PPI

Pharmacy Management PPI
Leadership skills
Implementation skills（ability to perform）
Knowledge・Skills（ability to retain)

Level Ⅰ

Level Ⅱ
Beginner

SOGO MEDICAL CO.,LTD. All Rights Reserved

Level Ⅲ

Level Ⅳ

Level Ⅴ

Advanced

19Increase the number of‘high-value pharmacies’
The company will increase high-quality pharmacies through new openings, meeting both doctors, and regional health care needs.

Increase the number of newly open pharmacies

Acquired prescriptions through ‘ D to D’ operations

FY2013targets ８３ Pharmacies

Practice start-up support nearby existing pharmacies

Practice start-up support + Newly open pharmacies

The company will support practice start-up near existing
pharmacies, fostering smooth relations between pharmacies
and practices, and encouraging new demand for prescriptions.

The company will open new pharmacies efficiently, linking withpractice start-up support based on regional needs.

Health care malls + Newly open pharmacies
The company will attract doctors to start-up private
practices by developing health care malls, and practice startup support. The company will provide regional health careservices and manage efficient medical facilities with many
patients.

Introduction of successors nearby existing pharmacies
The company will support the introduction of successors near
existing pharmacies. As a result, the company will help tosustain the provision of regional health care actively andcontinuously acquire prescriptions.

Plastic surgery （start-up in April, 2012）
BeforeBeforeAfter[Reference] Ripple effect on DtoD（newly open pharmacies）
After
37

53

30

Pharmacies

40
Pharmacies

21

13
FY2011SOGO MEDICAL CO.,LTD. All Rights Reserved

Consulting,
Leasing
Design/Construction

Ｍ＆Ａ

16

10

Practicestart-up
support

FY201220

Enhance the quality of‘high-value pharmacies’
The company has an OJT system to maximize pharmacists’ occupational functions.

Develop home-delivery pharmacy service
・Strengthen home-delivery pharmacy service
based around residential dispensing center
・Promote connections with residentially
focused medical institutions
・Get involved with palliative care and nutritional support
・Connect with Sogo Care Network Co, Ltd. (Nursing care)

OJT training system for different levels of pharmacist
ＧＯＥＳ：Gradable OJT Educational System
A step-by-step approach to help pharmacists acquire skills,
techniques, and attitudes.
・Knowledge of medical care （pharmaceuticals, clinical state）
・Communication Skills（SP training）
・pharmaceuticals （medication history, changing to generic drugs）
Assessment of pharmacists’ ability at individual level.

Instilling confidence and ensuring safety regarding the appropriate useof pharmaceuticals through team medical care.
▼Training system for different levels of pharmacist▲Sogo pharmacy
Yukuhashi
residential dispensing center

Pharmacist
Ⅰ

Pharmacist
Ⅱ

Head
Pharmacist

Block Leader Area Leader

Cultivation of management capabilities

Gradable OJT Education System GOES
Cultivation of specialized pharmacist skills
Pharmacist
Ⅰ

Pharmacist
Ⅱ

Specialty Pharmacist Specialty Pharmacist
Ⅲ
Ⅳ▲Sogo pharmacy, Aoto residential dispensing center, clean room
SOGO MEDICAL CO.,LTD. All Rights Reserved

21

Enhance the quality of‘high-value pharmacies’
The company has an OJT system to maximize pharmacists’ occupational abilities.

Generate new added value through ‘high-value’ pharmacies
・Cultivation of management capability
・Training program for pharmacist specialization
・Internal academic conference
・Generic drugs
・Risk management （dispensing errors）
・Sports pharmacist▲Senior nutritionist support
for diet consulting-support for athletes together with doctors・Pharmacist in charge of cancer or diabetes
・Senior nutritionist support for nutritional consulting▲Pharmacist in charge ofcancer or diabetes▲Guidance by a concierge

・Develop concierge function
・Support for self health care
・Support for school health・Pharmacies cooperating withhospitals and other pharmacies
・Support for drug treatment
through physical assessment▲Physical assessment training

SOGO MEDICAL CO.,LTD. All Rights Reserved

22Promote
health care malls and other projects
Management contracting

Health care malls
Shiboguchi clinic mall（Start-up in June, 2012）

Spine clinic（Start up in February, 2013）
Practice support

Clinical department
Internal medicine
Pediatrics

Start-up consulting
Leasing
Design ・construction
Pharmacy

Practice support
Start-up consulting
Leasing
Design ・Construction
Pharmacy

Itami Gyoukimachi clinic mall（Start-up in November, 2012）
Clinical department
Internal medicine
Pediatrics
Practice support
Start-up consulting
Leasing
Design ・Construction
Pharmacy

SOGO MEDICAL CO.,LTD. All Rights Reserved

Ebetsu suzuran hospital（Start up in April,2012）
Practice support
Consulting
Doctor introduction
Lease
Guarantee of obligation
Rental23

Ⅲ. Segments by region

SOGO MEDICAL CO.,LTD. All Rights Reserved

24Regional segments (From April, 2012)
The company has changed its segments to provide health care services based on regional community needs.
（Former segments）（ Current Segments）

Medical practice support

Higashinihon

Pharmacies

Nishinihon

OthersKyushu１ Segments the authority to meetregional needs
２ Develop health care services
needed by a regional community
３ Build operating structures
corresponding to the market scale

The company has built a operating structure corresponding to the market scale.
Directions

Market scale【 Operating components 】【 Sales components 】＜ National health expenditure ＞
Cu r r e n tsale sKyushu13%
Nishinihon
28%

37% 24% 39%

Higashinihon
59%

Tar ge t sale s

60％

Higash in ih o nNish in ih o n

30％

10％

K yu sh u※Resource:
Overview of Japanese medical care expenditure in FY 2008 （Ministry of Health, Labor and Welfare）
SOGO MEDICAL CO.,LTD. All Rights Reserved25

FY2012 Segment sales/ Operating income【Sales】
FY2011FY2012

ChangeChangeMain factors（¥millions）
）

Sales

80,22286,658

6,436

8.0%

Higashinihon

28,22331,7473,523

12.5% replacement demand.

Medical practice support

7,621

8,145

523

6.9% Leasing/Installment sales increased

Pharmacies

20,601

23,6013,000

14.6% New pharmacies and M&A increased pharmacy sales.

Nishinihon

18,66420,067

1,402

7.5%

Medical practice support

6,038

6,341

302

5.0% Leasing/Installment sales increased.

Pharmacies

12,625

13,7251,099

8.7% New pharmacies increased pharmacy sales.

32,01033,249

1,238

3.9%

Medical practice support

6,243

7,184

940

15.1% increased.

Pharmacies

25,766

26,065

298

1.2%

1,324

1,595

271

20.5%

KyushuOthersSales increased, despite reactionary drop after high TV

Leasing/Installment sales and consulting sales【Operating income】（¥millions）
FY2011FY2012

ChangeChangeMain factors

Operating income

4,848

4,324

▲ 524

Higashinihon

1,282

1,282

0

Nishinihon

1,246

989

▲ 256

▲ 20.5% Salaries increased.

Kyushu

2,390

2,256

▲ 133

▲ 5.5%

Others

353

247

▲ 105

▲ 29.7%

SOGO MEDICAL CO.,LTD. All Rights Reserved▲ 10.8%Operating income increased, despite amortization

0.1% increases.

26

FY2012 Segment results

Higashinihon
KyushuIncluding, thenumber of healthcare malls
The number ofpharmacies

Nishinihon
12
10

11

173

95
149

※Thick-bordered box: the number of pharmacies※Dotted line: the number of health care malls
Practicetransfer support(projects)

Practicestart-up support(projects)

Doctors wishing totransfer or start-up
practice ※Leasing sales
through practice Succeed Members
open in FY2012 in health care malls start-up support

Total

4,279

215

39,479

417

53

33

1,910

1,434

Higashinihon

2,078

97

23,841

173

21

12

1,235

278

Nishinihon

1,632

63

10,229

95

20

10

377

378

Kyushu

569

55

5,409

149

12

11

297

778

Pharmacies※In total 40,778 doctors were registered, including 1,299 doctors were not registered in a specific region.
SOGO MEDICAL CO.,LTD. All Rights Reserved27

Higashinihon Office-Pursuing new added value
The scale of the market in this region of the country is large, Higashinihon Office leads the company through pursuing new added value.

【 Transfer/Start-up support and doctors registered 】
18,552
14,874

23,841 (people)【 Leasing sale through practice start-up support 】

2,078 (projects)

32.4%

1,620

25.5%

1,412

1,235(¥millions)97(projects)

74

78

FY2010FY2011751

FY2012FY2010FY2011
Leasing Sales

FY2012
Ratio of contract

Doctors wishing to transfer or start-up practice
Practice start-up support
Practice transfer support【 Pharmacies 】【 Succeed Members 】

152
23

130
26

129

104

FY2010Existing

FY2011
Newly open

173 (Pharmacies)
21

30

27

31 (People)

147

145

161

83

88

86

FY2010FY2011FY2012152

FY2012

Hospital

ClinicDoctors in public practice, etc※including M&A
SOGO MEDICAL CO.,LTD. All Rights Reserved28

Nishinihon Office-Establishing the brandNishinihon office aims for an overwhelming the company’s establishment of brand through practice start-up support and opening
health care malls.

【 Transfer/Start-up support and doctors registered 】【 Leasing sale through practice start-up support 】

10,229 (people)
7,678

7,125

15.8%

1,632 (projects)

7.9%
902

816

63(projects)
42

37

FY2010FY2010FY2011377 (¥millions)216
FY2011
Leasing Sales

FY2012FY2012
Ratio of contract

Doctors wishing to transfer or start-up practice
Practice start-up support
Practice transfer support【 Pharmacies 】【 Succeed Members 】

9

75
7

59

68

FY2010FY2011

68

Newly open

95 (Pharmacies)
20

33

140

146

156

156

179

FY2010FY2011FY201275

FY2012
Existing

43 (people)

28

Doctors in public practice, etc

156

ClinicHospital※including M&A
SOGO MEDICAL CO.,LTD. All Rights Reserved29

Kyushu Office-Leveraging abundant assets
By leveraging the abundant assets that the company has built up in our place of origin, Kyushu office aims to springboard thecompany to the next stage of growth.

【 Transfer/Start-up support and doctors registered 】

5,409 (people)

479
357

36

14.0%

4,259

3,715

【 Leasing sale through practice start-up support 】

569 (projects)

55(projects)

40

6.3%

518

297 (¥millions)

FY2010FY2011FY2012FY2010

Leasing Sales

Practice start-up support
Practice transfer support
Doctors wishing to transfer or start-up practice【 Pharmacies 】

11
119

129

FY2010FY2012
Ratio of contract【 Succeed Members 】

139
10

130

FY2011FY2011
Newly open

149 (Pharmacies)
12

41

45

43 (People)

411

404

409

330

332

326

FY2010FY2011FY2012137

FY2012
Existing

Doctors in public practice, etc

ClinicHospital※including M&A
SOGO MEDICAL CO.,LTD. All Rights Reserved30

FY2013

Segment targets(projects)

FY2011FY2012FY2013 targets

ChangePractice start-up support

160

215

384

169

Higashinihon

78

97

205

108

Nishinihon

42

63

123

60

Kyushu

40

55

56

1

40

53

65

12

Higashinihon

23

21

31

10

Nishinihon

7

20

19

▲1

Kyushu

10

12

15

3

Newly open pharmacies※ The company’s targets for newly open pharmacies in FY2013 includes 18 pharmacies through M&A activities.

SOGO MEDICAL CO.,LTD. All Rights Reserved31Management principles

A good company has principles that everyone can agree with. SOGO MEDICAL’s pledge dedicates our lives to valuing human life through our
vocation and putting our hearts into our work. The Mission Statement, on the other hand, declares the Company’s purpose, while our
Corporate Credo outlines the assurances and promises we make to society.

SOGO MEDICAL CO.,LTD. All Rights Reserved

32

Concept“Good Medicine
through Good Management”
Medical institutions like hospitals and clinics need good management to practice good medicine. Practicing good medicine from the outset,
however, also results in good management. Therefore, good medicine and good management are both essential to the provision of efficient,high-quality health care. When treating patients, doctors have pride and a sense of mission that cause them to do everything in their power forthe patient they are treating. Consequently, SOGO MEDICAL’S mission is to provide the institutional support that enables doctors to focus on
the provision of this good medicine.

What is “Good Medicine”?

SOGO MEDICAL CO.,LTD. All Rights Reserved

Medical care is based on patients. Health care is recognized by society and provides peace of mind to regional
communities. Medical care is high-quality and efficient meeting people’s needs at the time. Medical care is ongoing.
Health care includes related areas such as preventive medicine and nursing care.

33

Explanation of the appropriate use of financial result forecasts.
These financial result forecasts are based on currently available information.
Actual financial results could differ from these forecasts due to various factors.
（ The amounts are rounded down. ）Contact

SOGO MEDICAL CO., LTD
Finance and Accounting Division
Tel: +81-92-713-9181 Fax: +81-92-713-7667
E-mail: ir@sogo-medical.co.jp
These presentation materials have been released on the following web page:

URL : http://www.sogo-medical.co.jp/english/
SOGO MEDICAL CO.,LTD. All Rights Reserved34